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Tokyo Electron plans to increase advanced chip equipment sales to 40% of total revenue
Wednesday, December 3, 2025 at 09:25 AM
A Tokyo Electron executive stated the company plans to increase the share of its sales derived from leading-edge semiconductor manufacturing equipment to 40% of its total revenue, aiming to compensate for the decrease in sales to China.
Context
Tokyo Electron plans to significantly increase its sales of manufacturing equipment for advanced AI chips, targeting this segment to reach about 40% of total revenue by the fiscal year ending March 2027. This represents a substantial pivot from the current level of roughly 30%. The growth is fueled by strong demand for equipment used in producing high-bandwidth memory (HBM) and advanced logic chips for AI servers.
This strategic shift is designed to offset an anticipated decline in its China business, which is expected to fall to about 30% of total sales from a peak in the low-40% range due to U.S. export controls. By focusing on high-growth, high-margin advanced nodes, Tokyo Electron aims to protect its target of a mid-30% operating margin and compensate for the cooling demand for mature-node equipment in China.
Sources (16)
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